Papa John's beats Q2 revenue expectations, raises international comparable sales forecast

Papa Johns International

07/08/2025 12:25

Overview

Papa John's Q2 revenue rises 4% yr/yr, beating analyst expectations

Adjusted EPS for Q2 beats consensus, despite net income decline

International comparable sales up 4%, driven by transaction gains

Outlook

Papa John's raises 2025 international comparable sales outlook to 2%-4% (previously flat to up 2%)

Company expects system-wide sales growth of 2%-5% in 2025

Papa John's projects North America comparable sales flat to up 2%

Company anticipates 2025 adjusted EBITDA between $200 mln and $220 mln

Result Drivers

COMMISSARY REVENUES - Higher volumes and pricing drove a $20.3 mln increase in commissary revenues

INTERNATIONAL SALES - Comparable sales rose 4% due to transaction gains and focus on core pizza business

G&A EXPENSES - Increased marketing and loyalty program investments contributed to higher G&A expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$529.17 mln
$516.10 mln (12 Analysts)
Q2 Adjusted EPS
Beat
$0.41
$0.33 (14 Analysts)
Q2 EPS
$0.28
Q2 Net Income
$9.67 mln
Q2 Operating Income
$24.49 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Papa John's International Inc is $47.50, about 14.7% above its August 6 closing price of $40.52

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw6YR7Jva

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)